For each transaction listed in E8-4, indicate the amount and direction ( or ) of effects on the financial statement accounts and on the overall accounting equation.
E8-4
Prior to recording the following, Elite Electronics, Inc., had a credit balance of $ 2,000 in its Allowance for Doubtful Accounts.
Required:
Prepare journal entries for each transaction.
a. On August 31, a customer balance for $ 300 from a prior year was determined to be uncollectible and was written off.
b. On December 15, the customer balance for $ 300 written off on August 31 was collected in full.